USD/JPY has come under extra downside pressure at the beginning of the week and it has breached the 102.00 mark, area last visited in November 2016 as safe haven demand keeps the pair and yields depressed, Pablo Piovano from NDDFX reports.
“The downside pressure on US yields have dragged yields of the 10-year reference to fresh historic lows once again.
“The negative view on the pair looks unchanged, at least in the short-term scenario, as speculations on the likeliness of another interest rate cut by the Federal Reserve at the March 17-18 meeting remain on the rise.”
“There are limited chances of a recovery in USD/JPY, leaving occasional bullish attempts as selling opportunities.”
“A breach of Monday’s lows in the mid-101.00s should expose the next support of relevance at 101.19 (monthly low November 2016) ahead of the psychological 100.00 barrier.”